GENERAL-PBSUCCESS - SPECIFIC-REPORTING OF CURRENT DEVELOPMENTS TO LINCOLN - RUN

Created: 2/9/1954

OCR scan of the original document, errors are possible

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CIA HISTORICAL REVIEW PROGRAM RELEASE AS SANITIZED

Lincoln

Chief of Station, Guatemala

subject: PBSUCCESS

no.

INFO: Chief, WHD

Reporting of Current Developments to Lincoln -Running Memorandum

Reference:

1. Attached for Lincoln and Headquarters is the third In the series of running memoranda being prepared andby this station. It Is composed of information submitted by various members of the Guatemalan station and each report bears the initials (In pseudonym) of the contributor and his evaluation of the material at tho time it was dictated.

2. The Identity of sources indicated in theby separate.

Hoagey

lo sure: Running memo

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tt

classification

tated withint - v<: ^rii v ' . ' .

. Amoass'-dor In some cmbarrassin- situation .vhlch willtherr. on excuse to accuse hitr of Intervention.ebruary,tated the local Coamunlst leaders are eagerly searchin-'. for someho 'J.S. Ambassador "in order that he can be ;lvsn the same treatment Patterson received." )

C. E. B.

'Sh the jovernmento-calledin which it was alleged that an internationalexisted for the purpose op overthrowing theof President AR32NZ,

In conversations with students, newspapermen, ando-fessional people.oted and rar-orted the foilowin-reactions to the white paper:

charges are believed to he fantasticpersons friendly to the ^overnnent could notthatotable record for effective

and security of operations in world wide

.would permit itsolf to be so easily implicated

onspiracymall nationglliko Guatemala.

if the cherges are true, many personsthat the government has been hurt rather thanthe revelations because opposition elementscountry now feel they are not alone,.that thereaid and support being organized abroad toin their struggles.

c. All of theith wriomiscussed this subject expressed the belief that the documents released by tho government to support its charges were faked or forged.

sources expressed indignationillingnessin the defense of the presentfas Venezuela, Nicaragua and the Dominicanwere involved in ths conspiracy to overthrow"ovornmont.

.vithout exception the reaction to toe whiteunfavorable to the -overnment.

(Evaluation: In-mediateltimate sources:ontent: 2}

>

Q5u

3. twtedebruary 1QSI; that the recent charges of the government re-ardin* an international oonsviracy arainst filiate aala are generally viowedabricated

cent's charges an'" demands by some pro-governmenthenfilLy ba prescribed for blotters isof the Vcnr and hysteria thav oerneate tiie cresent regime and its allies.

Co-Trent: It ia noted the^ Identity li'a contacts ire lower middle class persons and that the reactions reported byree with those attributed in previous reports to upper middle and upper classes.

Evaluation: Immediatesource: C; ultimate sources:

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li. Identity f> advised that he had been receiving reports from several sources, particularly employees of his company and one sreclal source fron: whom he obtains information concerning acti-ities within thehat elements of the CGT3 are planning to attack VAA, the United Fruit Company, and the IRCA railroad by planting arms and ammunition and then search! on United Fruit Company property;imilar tactic with regard to PAA by havin? some prohi-ited shipmentin its offices, and plantin- arms and ammunition falsely documentedailway shipment. The source advised that reports of this nature were rather persistent and ho was inclined to give some credence thereto and stated that insofar as his own company was concernod, he had tipped off those employees he considered reliable to be on the alert forlant.

5. dvised that Raraelr^HEHR^RA, prominent and wealthy Guatemalan landowner and businessman whose wife is Hilda de HKRRSRA, daughter of the now deceaseddvised himk that Ricardo VASQUSZ had sworn up and down thaft his brother, Carlos VASQUEZ, had been with Major Al.in Guatemala City the nicjitebruar andUAtfTlNEZ is definitely in Guatemala. Comment; Rafael HERRERA is definitely anti-Communist and his sf*talent with regard to what had been told him by Rlnardos probably true but Carlos VaSQUBZ and another brother, Eddy xyASQUSZ, are considered by this station to be ofeliability. They are known to be very friendly with former Foreign Minister RaulA and to have attended atne exclusive dinner in the Presidential Palace several, ut which dinnerolitical figures, including Victor Manuel GUTIERREZ and .loseTUI1Y, wore present. Attendance at this dinner was personally revealed to the Chief of Station bv Kddv VASO.UEZ, ulthoush it was known prior to that time that he

had been in attendance. unber of monthsthnt she had heard several0 that Eddyad been an "ear" (informant) for the government andilitary officer was compromised and expelled from the country. Eddyrequently attends orlvote nortSes o" -overnmcnt oTiciala end more frequently, parties he American colony and opposition elements. It has been confirmed by several sources that hie sister-in-law, Gloria SAKSAOHBRO, ls the present mistress of Col. Curios

Vejada, pro-communist Army officer, and former mistress of Raul QSBOTJEDa. She is said to havo previously had an unfortunate marria7

The allegation that MARTINEZ is in Guatemala lsumor and possibly inspired.

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5 also adviaedource used by him *bo haswithin the CGTG has advised that Communist elements inare lookin* for any opportunity to embarrassand force him out of the country. Source didany ?peclflc tactic which they contemplatestated that they wanted to "get something on Mr-"maks an example of him as they didormerPATTSRSOK.

Evaluation:

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k

5 advised onebruary that ho had received athe informant who furnishes him with informationwithin the CGTG to the effect that on the nirrht of

3.eeting or theommittee of Jlhe CGTG was held" at CGTG offices at Oa Cylle andvenida j/ which Victor MsnuejXoimSRRBZ,nuelfsFELLBCEH, "lax^SALAZAR, Alf redoVGOERRA Borges and Leonardo rfJASTIXLO Flores, among others, participated. The informantorted tohat thereumber of decisions made and several points taken up out that the following were the most important:

reed to take all measures immediately foroflarge demonstration, to take place$ Februaryn support of Colonelis to iroceed through thy principal streets of theterm'nntoeeting in front of the Nationalwaa agreed that PiLL 5CER, jUTTKRHBZ and CASTILLOdevelor the foreign intervention theme, that thewould sins the national anthem and carry flareshands in order to moke the group ai?"nar as inwoain^since It Is known that Ambassador PET'RIFOYon that day and It is Important that he observe the

which tho workers In general are ready to afford

the government.

was agreed tiommunication to the -Minister of

Government to the effect that he take onerretic measures

a-rainat the Independent newspapers which are cooperatln- wit feudalthe reaction and the Yankee imperialists

since these newspaper say -hat they are ene.cies of tho revolution and,onsequence, are subversive and unit bo energetically repressed.

3) It was aprced to'procose to the government,opy

to both AHBiKZrolyn Minister TORTrilXO, that to maintain tranquillity and to carry out the economic and social evolution of the nation it Is neoossary to force the abandonment of the country by the foreigners BU*U?. 3irmp, manager of the Unite: Pruit Company in Guatemala, 3RADSHAVI (presi-ientthe 1RCA) and WILSOU (PAA manager in Guatemala) for tney aro the leaders of tne yankee imperialist companies which for some time have beenn conjunction with the reaction, to overthrow the government of AR-lil.Z; that for them (the communist leaders) there would be no lack of Justification for such action against these imperialists. According to the informant, copies of the communication wore to be sent to ARBEIZ snd TORIELLO on the morning of li February.

Source statedhia informant had advised that in addition to BOKP, 3RADS:<AVTILS0K, several other names which were unfamiliar and which he could not recall were mentioned. However, one of them was thought toan who has offices on ?th Avenue South botwoen Qthh Stroota and wno, according to Information he has received amon? CGTG elements, is the principal Intelligence agent, or at least thobetween. Embassy and opposition elements.

Comment: The Identity of any person having contact with the Embassyaged in intelligence activities who has offices in theblock has not been established. The Information from the informant in that respect Is believed to be Inaccurate.

Bvaluation: All Information received frons related to this paragraph, except as previously noted in comment. Is: Original source: F; Immediate source:ontent: '.

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On tho ni rit ofebruar- aid he had laami fron individuals withinircles In Guutr-iaia that an unknown quantity of ems and aimnunltlon currently is bein-tainnd for the "unt^alar. -overnment by the Russian .vnl-assy Mexico City. lhe source was unnble to st:-te whether the are nctually stored within the premises ofj-siar. imINiasy. >'ho sane source stnted the arms are ofake ond only recently arrived in Mexico City. The atemalan governmont currently is attempting toure method of bringin* the arms fromty toCity withouthipment becominr oublic knowledge.

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. The some identityurnished the foregoing in'ormatlon claims he has learned "roc. friends within the Oua-enalan jovernmentJor Alfonsc/iiARTIs'EZ Eatovez paid for the shipment of armspon his arrival in Europe. liARTIKSZ allegedly paid for the shipment, which had already arrived in Mexico,. currency which he carried with him for that purpose. MARTINEZ ia expected to return to Ouatenala City ln the near future after which, according to source's Informants, he will quietly travel to Mexico City for the purpose of attomotln^ to arrange for the transhipping of the arms to Gua terra la City by truck.

8 February

10. dvised that the photostatic cories- of documents reportedly exchanged between General Miguel YDioORAS Fuentes and Carlos CASTILLO Armas were sold to they an unidentified individual who was only described as being an individual in the confidence of Nicar-aguan President SOkOZA and tho lattor's son. The Guatemalan government allegedly paid the unidentified Individualnd In addition, offered thatuatemalan passport and permanent residence ln Ouate-nala If he so doslre; Both the passport and o'fer of residence were refused by the individual concerned.

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11. dvised he has learned that immediatelyGuatemalan government preas release concerning thethe government" the Guatemalan governmentCommunist leaders in Guatemala were elated at thelateommunist leaders were stillas they felt such evidence placed before thewould to Guatemala imchand would callthe other Americah Republics to the so-calledcountries ln "uutemalan

9 February

dvised on the worn in*ebruarythat, ascordln*ery reliable source of Information, I; homos In the city or Tlquisate, Guatemala will be searched by thoudicial witr.iiythe next three days. One of the homos to be seqrched/is that of Identity 9. Anothers that of Br. AaroaNOKQ,f theuit Co-anany. Thecr homes to be searched belon' to individuals connected with the United Fruit Ooamanw.

f was told by his source that tho luatera lan author! tlcis will ho searching for arms and tho identity has been warned to Tako sure that no arms are planted by tho rolice durln their soarch which talent be conveniently foundecond search of the prealsoa. Accordin* to the source, the -alar, authorities definitely aro tryo prove that United Xrult Company officials are etorin* arras in their private residences. Evaluation: 3

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13. U,tated rie had beon told by one of his koy labor leaders that the leader nad beenash by the Ouardla Judicial ln Guatemala If he would assist them in helping to "uncover" the arms and ammunition allegedly in the possession of tho United Fruit Company. The identity was told by his source that the Ouardla Judicial uas not particularly interested in whether or noteposit actually existed. They are simply intorestod in obtaininghat the United Fruit Company has arms. Once the arms are "uncovered" the Guateualan government will announce its discovery through press and radio channels. Evaluation:

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dvlaedii that he hadefinite impression that something most unusual is happening to the morale of people in the government. He said that one fi February he visited the offices of the IOSS for the nurpose of paying an account connected with his flnca anderiod of the past three months. He said that being three months behind in his payments, he was actually subjectine but ho was received most cordiallyumber of employees there with whom ho had contact and discussed his case; that thore was no indication that anyone had the slightest intention of Imposing the fine and that the made every effort to ;Ive hire the nost prompt and courteous service. He also said thot one of his employees whovisits tho National ralaco in connection with his company's business and who has many times complained of his Inabilityt things done and get service from the offices which he contacts had advlaed himhe past week ho has mario several visits to the National Palace and has been overwhelmed with courtoous treatemnt; that he hasprompt service and that he has detected an air of

COHMtTEiNi HAL

friendship which he has not seenon* period of time. Idontitytated that theso two observances, one byand another by his employee, tend to 3iveefinitethat neonle in government offices are so afraidhe government will fall that they arc now trying to mako amends to those In whom they ordlnurily have no Interest In talking. Ho said that he consideredign of weakness and opportunism on the port of government employees. Evaluation:

1$. Identitylso advisedk. that he had it on good authority thatAA plane which landed In Guatemala was searched by two officers of the dit Judicialurpose unknownjitnat these officers contacted the Cantaln of the Port, ColoneU'lXNDIZAEAL, who is considered friendly to PAA, and had him accompany them on the plane while they made the search; that they looked back of curtains, in the cockpit, underneath the seats andeneral examination but that lt was not apparent as to the exact object of their search.

Identitydvised that on orebruary four or. karlnes In civilian clothes destined to the finbaaay (which have. Incidentally, been assignedemporary basiaard the Embaaay) arrivedAA piano and as la customary, the Guardla Judicial agents at the airport immediatelyassenger list and upon determining that the Marines had arrived, oalled someone in the National Palace. Identitylso advised that from observations by personnel of PAA with whom ho has close contact, he had ascertained that the Guardla Judicial takes similar action to that as in the case of the Marines each time an American citizenpecial passport arrives or passes in transit through Guatemala. He said that employees of PAA had particularly noted that the Guardla Judicial is especially interested in American Army officers ln transit.

Comment: The apparent unusual interest in the Americanofficers in tranalt through Guatemala la Indicative of theof the government and its efforts to be on the alert for any signs of American participation in any move against the present reg

Evaluation:

dentitydvisedebruary that ho had that day received information from an American cltlzon contact of his who ln turn has contacts in the INFOP thatesultonversation by this American citlzon with AlonsoJfcASTHOigh officialat government agency, he huo? ascertained that CASTHO Conde had almost been taken by mistake by the government to have been involved in tho recent alleged "complot" against the government;

that CASTRO Condo had boon ln contact witnAero Club pilot, with reference to poaalbleof an airplane which would be used forsections of the country by infopnad beenen lessons fronclaimed to have the representation incivilian type plane which tho source thought wascastro Conde hado various small airfieldswitn FER.JAT.'DEZ whoonsiderablethe fields, the approaches thereto, tho danger factors toln landing or taking offese small fieldsthe time that FERNANDEZ wan arrested (subsequentlyfrom Guatemala) he learned that members of thewere looking for him. He therefore went toof fcajor Jalno ROSIQCHERO, Chief ofardiawaa extreaely Interested ln his associations withthe airfields he had viaited with FERIAiiDEZ, all of whichIn detail toR*5. The source claimed thathad mentioned particularly the flelda on theslopesu ate ma

Original document.

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